The “Mount Everest” Problem with Loyalty Tiers (And how to fix it).
We see it constantly. A customer signs up, scans the top-tier benefits, checks the requirements, and mentally checks out: “I will never reach that.”
They don’t leave; they just switch to autopilot:
“Do you want to collect points?” — “Sure.”
“Do you want to redeem?” — “Okay.”
The passion is gone. The programme hasn’t lost the customer, but it has lost their ambition.
🎯 A curious solution: Euronics and the power of “micro-steps”.
Electronics retailer Euronics found a brilliant, low-tech solution to this psychological barrier.
Instead of asking new members to climb a mountain, they simply split the base tier in two. To reach the next level, a customer didn’t need to spend a fortune or invest hours of effort. They just had to complete a simple “mission” — like a 30-second questionnaire. (Euronics frames their entire programme logic around these “missions,” but that is a topic for another dialogue!)
The result?
1. Instant Gratification: The customer feels progress immediately (the “Endowed Progress Effect”).
2. Better Data: A quick, engaging survey replaces boring profile forms.
3. Momentum: A customer who wins early is a customer who explores what else is possible.
Stop designing programmes for the top 1%. Start designing for the Day 1 experience.
#Loyalty #LoyaltyStrategy #LoyaltyProgram #CX #LoyaltyMarketing #Trends #LoyaltyLandscape #Benchmark #Research #Loyalz #LoyaltyUnboxed
We see it constantly. A customer signs up, scans the top-tier benefits, checks the requirements, and mentally checks out: “I will never reach that.”
They don’t leave; they just switch to autopilot:
“Do you want to collect points?” — “Sure.”
“Do you want to redeem?” — “Okay.”
The passion is gone. The programme hasn’t lost the customer, but it has lost their ambition.
🎯 A curious solution: Euronics and the power of “micro-steps”.
Electronics retailer Euronics found a brilliant, low-tech solution to this psychological barrier.
Instead of asking new members to climb a mountain, they simply split the base tier in two. To reach the next level, a customer didn’t need to spend a fortune or invest hours of effort. They just had to complete a simple “mission” — like a 30-second questionnaire. (Euronics frames their entire programme logic around these “missions,” but that is a topic for another dialogue!)
The result?
1. Instant Gratification: The customer feels progress immediately (the “Endowed Progress Effect”).
2. Better Data: A quick, engaging survey replaces boring profile forms.
3. Momentum: A customer who wins early is a customer who explores what else is possible.
Stop designing programmes for the top 1%. Start designing for the Day 1 experience.
#Loyalty #LoyaltyStrategy #LoyaltyProgram #CX #LoyaltyMarketing #Trends #LoyaltyLandscape #Benchmark #Research #Loyalz #LoyaltyUnboxed
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When every programme sounds the same (And how to stand out)
“Get discounts”. “Collect points”. “Redeem vouchers”. “Save with us.”
Sound familiar? Every loyalty says the same thing.
But here is the uncomfortable truth: that’s not enough. Participants don’t just need those benefits – they expect them (meaning yes, you still need this communications and offerings, but they won’t let you to stand out). And when everyone offers the same, there is no reason for a customer to invest genuine effort. They settle into same autopilot mode as with every other programme.
The programme gets bodies on the books. It does not get hearts.
🎯 Against this backdrop of sameness, South Africa’s Discovery financial group took a radically different approach with their loyalty.
Instead of leading with discounts, they led with a promise: “Live longer.”
And they backed it with statistics facing potential member or customer from the very beginning:
• Average life expectancy in SA: 64 years
• For insured customers: 67
• Vitality members: 83
• Vitality members who have reached Gold or Diamond Vitality Health tiers: 89
Is it controversial? Absolutely. Is it statistical sleight of hand? Perhaps – the healthiest, most affluent customers naturally reach the top tiers. But does it work? Without any doubt.
The genius part: They didn’t stop at the promise. Vitality’s actual rewards align with that mission. Members earn benefits not just for spending, but for:
• Health behaviours (fitness tracking, wellness assessments)
• Financial discipline (smart money choices)
• Safe driving (how they drive)
In short: the better your lifestyle, the better your rewards.
This is not about discounts. It is about belonging to something that matters. It is about becoming the type of person the programme celebrates – and getting rewarded for it.
Why this matters to you:
If your loyalty scheme cannot articulate why customers should care beyond the transactional layer, you are competing on price alone. And in a crowded market, that is a losing game.
The future belongs to programmes with purpose, clarity, and emotional resonance.
#Loyalty #LoyaltyStrategy #LoyaltyProgram #CX #LoyaltyMarketing #Trends #LoyaltyLandscape #Benchmark #Research #Loyalz #LoyaltyUnboxed
“Get discounts”. “Collect points”. “Redeem vouchers”. “Save with us.”
Sound familiar? Every loyalty says the same thing.
But here is the uncomfortable truth: that’s not enough. Participants don’t just need those benefits – they expect them (meaning yes, you still need this communications and offerings, but they won’t let you to stand out). And when everyone offers the same, there is no reason for a customer to invest genuine effort. They settle into same autopilot mode as with every other programme.
The programme gets bodies on the books. It does not get hearts.
🎯 Against this backdrop of sameness, South Africa’s Discovery financial group took a radically different approach with their loyalty.
Instead of leading with discounts, they led with a promise: “Live longer.”
And they backed it with statistics facing potential member or customer from the very beginning:
• Average life expectancy in SA: 64 years
• For insured customers: 67
• Vitality members: 83
• Vitality members who have reached Gold or Diamond Vitality Health tiers: 89
Is it controversial? Absolutely. Is it statistical sleight of hand? Perhaps – the healthiest, most affluent customers naturally reach the top tiers. But does it work? Without any doubt.
The genius part: They didn’t stop at the promise. Vitality’s actual rewards align with that mission. Members earn benefits not just for spending, but for:
• Health behaviours (fitness tracking, wellness assessments)
• Financial discipline (smart money choices)
• Safe driving (how they drive)
In short: the better your lifestyle, the better your rewards.
This is not about discounts. It is about belonging to something that matters. It is about becoming the type of person the programme celebrates – and getting rewarded for it.
Why this matters to you:
If your loyalty scheme cannot articulate why customers should care beyond the transactional layer, you are competing on price alone. And in a crowded market, that is a losing game.
The future belongs to programmes with purpose, clarity, and emotional resonance.
#Loyalty #LoyaltyStrategy #LoyaltyProgram #CX #LoyaltyMarketing #Trends #LoyaltyLandscape #Benchmark #Research #Loyalz #LoyaltyUnboxed
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Personalisation is brilliant, yet it’s not enough (And what to do)
Just for you! Only today! You bought A, so we think you’ll like B. This special offer is yours alone! And lots of other option.
Yes, personalisation works. Yes, it is necessary. But here is the uncomfortable bit: personalisation alone does not transform a programme. It just makes the generic less… generic.
📍 The core problem:
Personalisation is what you decide for your customer. Customisation is what they decide for themselves. Big difference.
Think about it: a family of eight who fancy Champagne and caviar for breakfast versus a family of three munching cereal. A business traveller clocking up weekly flights versus someone taking one annual holiday. Electronics for a 10-bedroom house versus a one-bedroom apartment.
All very different. Imagine all spending 100% of their category budget in your programme. Yet one-size-fits-all tiers treat them identically.
When you force everyone through the same funnel, you inevitably disappoint most of them.
🎯 A curious example: How Atmos Rewards (Alaska & Hawaiian Airlines) got it right
Rather than imposing a single way to earn tiers, members now select how they accumulate progress:
• Flight segments flown
• Total distance travelled
• Money spent
Same destination. Three different journeys. Each customer picks what fits their life.
And the brilliance doesn’t stop there. Between each tier, Atmos recognises incremental progress with milestone rewards – and here too, customers choose.
The member decides what matters to them.
Why this matters:
One-size-fits-all programmes inevitably frustrate the people they don’t fit. Customisation flips the script. It says: “We built flexibility into this for you.”
The result? Higher engagement. Greater perceived value. Real ownership.
🚀 The question: If you were to add customisation to your programme, where would you start?
#Loyalty #LoyaltyStrategy #CX #LoyaltyMarketing #RetailTrends #LoyaltyLandscape #Benchmark #Research #Loyalz
Just for you! Only today! You bought A, so we think you’ll like B. This special offer is yours alone! And lots of other option.
Yes, personalisation works. Yes, it is necessary. But here is the uncomfortable bit: personalisation alone does not transform a programme. It just makes the generic less… generic.
📍 The core problem:
Personalisation is what you decide for your customer. Customisation is what they decide for themselves. Big difference.
Think about it: a family of eight who fancy Champagne and caviar for breakfast versus a family of three munching cereal. A business traveller clocking up weekly flights versus someone taking one annual holiday. Electronics for a 10-bedroom house versus a one-bedroom apartment.
All very different. Imagine all spending 100% of their category budget in your programme. Yet one-size-fits-all tiers treat them identically.
When you force everyone through the same funnel, you inevitably disappoint most of them.
🎯 A curious example: How Atmos Rewards (Alaska & Hawaiian Airlines) got it right
Rather than imposing a single way to earn tiers, members now select how they accumulate progress:
• Flight segments flown
• Total distance travelled
• Money spent
Same destination. Three different journeys. Each customer picks what fits their life.
And the brilliance doesn’t stop there. Between each tier, Atmos recognises incremental progress with milestone rewards – and here too, customers choose.
The member decides what matters to them.
Why this matters:
One-size-fits-all programmes inevitably frustrate the people they don’t fit. Customisation flips the script. It says: “We built flexibility into this for you.”
The result? Higher engagement. Greater perceived value. Real ownership.
🚀 The question: If you were to add customisation to your programme, where would you start?
#Loyalty #LoyaltyStrategy #CX #LoyaltyMarketing #RetailTrends #LoyaltyLandscape #Benchmark #Research #Loyalz
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Visit us 7 days in a row and get more points (Okey. How about going further?)
“Come today, earn points. Come seven days straight, earn extra points.”
Sound familiar? Visitor loyalty schemes are everywhere. Theme parks do it. E-commerce does it. Apps do it.
But here is the awkward question: Does rewarding the act of visiting actually change behaviour? Or does it just encourage ghost visits – people logging in for 5 seconds to claim points, then vanishing?
📍 The real problem:
Visits are easy to measure. Engagement is harder. But engagement is what actually matters.
🎯 A curious example: Aquarium of Niagara’s smarter approach
Rather than rewarding “you showed up,” they reward “you actually did it.”
Watched a live show? Points. Tried an interactive exhibit? Points. Completed a learning module? Points.
The magic: they are not rewarding footfall. They are rewarding meaningful interaction.
Here is why this matters: A visitor who sits through a 20-minute sea lion show learns something, feels something, experiences something. They are more likely to return. They are more likely to recommend it. They are more likely to spend at the on-site café.
Engaged visitors more likely to discover all the opportunities, meaning they’re more likely to leave satisfied… share their experience… visit again.
But it opens even bigger doors. When you track what people actually engage with, you can:
• Manage queue times intelligently
• Direct traffic to quieter attractions
• Promote underutilised facilities
• Gather genuine insights about what visitors love
How this applies to different worlds:
In e-commerce, stop rewarding “visited the site.” Start rewarding the journey:
Visit + browse category + watch a product demo + save to wishlist + add to basket.
Each step requires actual attention. Each step tells you something real about intent.
You are not just tracking traffic. You are tracking interest.
Why this matters to your bottom line:
Engagement-based rewards cost less to operate (no ghost visits). They generate better data. They improve lifetime value. They reduce friction between discovery and purchase.
🚀 One principle change. Multiple business benefits.
#Loyalty #LoyaltyStrategy #LoyaltyProgram #CX #LoyaltyMarketing #Trends #LoyaltyLandscape #Benchmark #Research #Loyalz #LoyaltyUnboxed
“Come today, earn points. Come seven days straight, earn extra points.”
Sound familiar? Visitor loyalty schemes are everywhere. Theme parks do it. E-commerce does it. Apps do it.
But here is the awkward question: Does rewarding the act of visiting actually change behaviour? Or does it just encourage ghost visits – people logging in for 5 seconds to claim points, then vanishing?
📍 The real problem:
Visits are easy to measure. Engagement is harder. But engagement is what actually matters.
🎯 A curious example: Aquarium of Niagara’s smarter approach
Rather than rewarding “you showed up,” they reward “you actually did it.”
Watched a live show? Points. Tried an interactive exhibit? Points. Completed a learning module? Points.
The magic: they are not rewarding footfall. They are rewarding meaningful interaction.
Here is why this matters: A visitor who sits through a 20-minute sea lion show learns something, feels something, experiences something. They are more likely to return. They are more likely to recommend it. They are more likely to spend at the on-site café.
Engaged visitors more likely to discover all the opportunities, meaning they’re more likely to leave satisfied… share their experience… visit again.
But it opens even bigger doors. When you track what people actually engage with, you can:
• Manage queue times intelligently
• Direct traffic to quieter attractions
• Promote underutilised facilities
• Gather genuine insights about what visitors love
How this applies to different worlds:
In e-commerce, stop rewarding “visited the site.” Start rewarding the journey:
Visit + browse category + watch a product demo + save to wishlist + add to basket.
Each step requires actual attention. Each step tells you something real about intent.
You are not just tracking traffic. You are tracking interest.
Why this matters to your bottom line:
Engagement-based rewards cost less to operate (no ghost visits). They generate better data. They improve lifetime value. They reduce friction between discovery and purchase.
🚀 One principle change. Multiple business benefits.
#Loyalty #LoyaltyStrategy #LoyaltyProgram #CX #LoyaltyMarketing #Trends #LoyaltyLandscape #Benchmark #Research #Loyalz #LoyaltyUnboxed
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